Current Events > Is $900-$1000 a month rent ok if I make around $2200 a month net?

(+) Yeah! (+)

I live in Indiana for reference.

Im trying to escape the bums of my state and live somewhere where people are worth something. But everywhere immediately jumps up in rent obviously for midwest standards.

My job is slightly commissioned, so my income isnt guaranteed. By I average about $2200.

I got only $1300 in savings, but I really wanna move out again. I cant recall the percentage of your income bills should be. Is this safe? Taking into account other bills?

My student loans are paid ahead until 2021, and my car payments are ~$300 a month, though I pay $400. These are my only big monthly bills.

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That's kind of a lot to be spending on your car. $3600/year minimum?

I've lived in income/rent circumstances like that before, but didn't have any other debts. It was fine.
I would say yeah you can do it, but you should save up more than $1300 first

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That's a lot

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Is that after taxes?

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The rule of thumb is 1/3rd of your income should be rent. That's kind of unrealistic with modern rent prices compared to wages, but under 50% should be pretty safe if you can cut other bills.
Try to save up two months of rent, though, in case of emergencies. You also need to account for the security deposit and moving costs.

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I make $2200 a month after taxes

I pay about 800$ in rent and I am able to save like ~300 per month after all bills and retirement funds.

But I have basically no car payment and one of the cheapest phones you can buy.

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Thats too much imo TC.

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How much is $2200 a month hourly? Sorry Im bad at math lol

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When I first started my current job I was making about $2100 a month and was paying $900 for rent. I never had any issues, but I also don't drive so I didn't have any car or insurance payments to worry about. I've got zero debt too.
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It's doable but
ChocoboMog123 posted...

The rule of thumb is 1/3rd of your income should be rent.

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It's too much.

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How much do you make after taxes?

Godnorgosh posted...

How old are you?

In your situation I'd probably at least be looking for a roommate tbh. You don't have much of a cushion or a particularly stable income, and you need to be able to save.

24. I had a roommate before, but she was so terrible Ill never do that again tbh.

ChocoboMog123 posted...

The rule of thumb is 1/3rd of your income should be rent. That's kind of unrealistic with modern rent prices compared to wages, but under 50% should be pretty safe if you can cut other bills.
Try to save up two months of rent, though, in case of emergencies. You also need to account for the security deposit and moving costs.

Gotcha... I just recovered from an overly generous holiday season. I might have to put in OT to try and up my monthly average income too then.

Sonic Cannon posted...

That's kind of a lot to be spending on your car. $3600/year minimum?

I've lived in income/rent circumstances like that before, but didn't have any other debts. It was fine.
I would say yeah you can do it, but you should save up more than $1300 first

Think so? I recently refinanced my 16000 loan to a 4% interest rate. I figured thatd be good.

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In Alabama, you're legally required to show proof that you make at least triple the rent payment before you can sign a lease. So spending almost half your income on rent sounds >_>' af.

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Tony_Biggie_Pun posted...

How much do you make after taxes?

About $2200. Thats my net. I can make $3000 some months. But $1800 if I do poorly. So I tried to lowball it to be safe.

Though it seems people think too much without either very cheap expenses, or an increase in income. Hm...

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DevsBro posted...

In Alabama, you're legally required to show proof that you make at least triple the rent payment before you can sign a lease. So spending almost half your income on rent sounds >_>' af.

Idk if it's legally required but that's also the policy enforced by landlords in Texas. Lowest I've seen is 2.5x from nonprofit owners.

I'd say $1k is a little much, but as long as you budget you can probably live reasonably and get some savings in.

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As for cash savings, ideally you'll want enough for 3 to 6 months living expenses if you lose your job, but maybe settle for 2 before moving if you really want out.

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Usually monthly income needs to be 2.5x monthly rent at a MINIMUM. This ain't even hitting that.

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$2200 a month is $12.7/hr ($15-$18/hr before taxes).

$1000 in rent leaves you with $1200 per month.
Assume $400 for car (seems high).
$200 for utilities (water, gas, electric, and internet).
That's $600 per month for food, phone, fun, or savings. Food could be $200-400, phone could be $100.

Going to be tight, but it looks like you can cut costs. Maybe pay off that car if you can and go in with some savings, those are the only things holding you back. $1200 a month to work with gives a good amount of wiggle room, it's just bills and other costs holding you back. You might not be able to find rent for $700 depending on where you live.
People saying that rent is high don't seem grounded. You can't lower rent prices without moving, and you can't always just raise your income. This rent is workable, especially if you cut other costs. If it improves your life, you should take it (eventually).


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I'm actually in a similar boat my monthly income is a little more but my rent will be 1650 a month but I have alot more in savings.

Ideally your rent should only be 1/3 your income but you can make it work at 1/2 but your have to make some sacrifices. What's your budget like?

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How much are your student loans also?

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Prismsblade posted...

How much are your student loans also?

Ive paid those down quite a bit. Only at $2500 and its been paid ahead. I plan to just pay it off for good come my next tax return tbh. I dont think Im gonna touch it.

My phone is only $80 a month since I paid that off too last year. Im not upgrading until my phone doesnt work anymore.

My car is literally the only nuisance in my way. If only my old car didnt die on me.

I feel like once I move out, I can finally start investing into my hobbies that can supply additional income. I cant do that crammed in a room that I cannot even fit all my belongings into. My neighborhood is just terrible too tbh.

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DevsBro posted...

In Alabama, you're legally required to show proof that you make at least triple the rent payment before you can sign a lease

that's kinda fucked. maybe 2x.
if the scenario played out here everyone would be out a place. poverish people don't even make close to 3k a month.
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kingdrake2 posted...

that's kinda fucked. maybe 2x.
if the scenario played out here everyone would be out a place. poverish people don't even make close to 3k a month.

The flip side is there are places you can get for $100/mo.

You don't want to live there, but they exist.

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You'll won't be saving much or going out for fun.

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cuttin_in_farm posted...

My phone is only $80 a month since I paid that off too last year.

Is this considered cheap? I've never spent more than $20/month on a phone bill, and 40-50 is the upper end of what I'd consider normal.

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What services do you get for $20 a month?

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Just leave Indiana ffs

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Sonic Cannon posted...

Is this considered cheap? I've never spent more than $20/month on a phone bill, and 40-50 is the upper end of what I'd consider normal.

Simon_Petrikov posted...

What services do you get for $20 a month?

I was just gonna ask. I have unlimited data, so Im pretty sure I have a good price.

berlyman101 posted...

Just leave Indiana ffs

Eventually.

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